Sponsor: Property Tax, Records & Election Services
Title
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Repurchase of a Tax-forfeited Property Located at 1008 Carroll Avenue, Saint Paul, MN 55104-5414
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Recommendation
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1. Determine that by allowing a timely repurchase of the following property, any injustice or undue hardship caused by the forfeiture will be corrected and the repurchase will promote the use of the lands that will best serve the public interest:
Commissioner District 4
PIN: 35-29-23-33-0051
Property Address: 1008 Carroll Avenue, Saint Paul, MN 55104-5414
Repurchase Amount Due to Date: $ 18,670.91
2. Approve the repurchase of the above tax-forfeited property by Trinity Financial Services, LLC, an entity to whom the right to pay taxes was given by mortgage, (“Repurchaser”), subject to the following conditions that must be met within 90 days of approval of this resolution: Repurchaser will a) execute a repurchase contract; and b) provide the required down-payment or payment-in-full of all back taxes, interest, penalties, recording fees and costs and maintenance costs at the time of execution.
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Background and Rationale
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The subject property is located at 1008 Carroll Avenue and is an occupied single-family house located in the Summit-University neighborhood of Saint Paul. The property is a rental property and currently occupied by former tenants of the fee owner at the time of forfeiture. Property taxes for 2014, 2015, 2016, 2017, 2018 and 2019 were unpaid and the property forfeited to the state on August 3, 2020.
The Ramsey County Board of Commissioners previously reviewed and approved repurchase application of David Goodlow Jr., fee owner at the time of forfeiture (“Original Applicant”), in Ramsey County Board Resolution No. B2021-032, dated February 9, 2021, conditioned upon Original Applicant providing payment-in-full of all back taxes, interest, penalties, recording fees and costs, and maintenance costs; executing a repurchase contract; providing an executed assignment and assumption of the repurchase contract by a third-party buyer; and continuing to maintain and keep the property in a secure and safe condition from the date of contract execution through the term of the repurchase contract or any city oversight, whichever is longer. Conditions were to be met within 120 days of approval of the resolution.
Original Applicant was unable to complete the repurchase in the required 120-day timeframe. The subject property was classified as non-homestead at the time of forfeiture and pursuant to Minnesota Statutes, Section 282.241, Subd. 1, repurchase applications for non-homestead property must be received within six (6) months of forfeiture. Due to the expiry of the statutory timeframe, Original Applicant is not able to make new repurchase application and no longer has the ability to repurchase the property.
Property Tax, Records & Election Services (PTRES) received a second timely repurchase application within the six-month statutory timeframe from Repurchaser, to avoid the potential loss of its lien in the event Original Applicant’s repurchase was unsuccessful. PTRES has reviewed the repurchase application and supporting documentation and finds Repurchaser is a valid interested party in the property, has the right to make repurchase application, and made application to repurchase in a timely manner as defined by statute.
The city of Saint Paul has reviewed the application for police, building, and property maintenance code violations within the past five years and has resolved that the Board of Ramsey County Commissioners approve the repurchase on the condition the property be transferred from owner to a third party. PTRES finds that approving this repurchase will allow Repurchaser to begin foreclosure proceedings on the property, which will accomplish the city’s third-party transfer recommendation.
Based on these findings, PTRES recommends approval of the repurchase application, thereby correcting any undue hardship or injustice resulting from the forfeiture due to the loss of the property.
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County Goals (Check those advanced by Action)
☒ Well-being ☐ Prosperity ☐ Opportunity ☐ Accountability
Racial Equity Impact
While the racial equity impact of repurchasing one parcel is unclear, targeted community data and neighborhood racial demographics provide marginal insight. This property is not located in a targeted community, as defined by Minnesota Statutes, section 469.201, subd. 10. More than 51% of households in the Summit-University neighborhood are non-white as compared to only 43.3% of non-white households throughout all of Saint Paul, which makes this an area more racially diverse than most of Saint Paul. Investments made in this community can positively impact racial equity.
Community Participation Level and Impact
PTRES informed the city of Saint Paul about the property. The Saint Paul City Council passed a resolution recommending the Ramsey County Board approve the repurchase on the condition the property be transferred from owner to a third party.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
Revenue from sales of tax-forfeited property is deposited into the Tax Forfeited Land Sale Fund.
Net proceeds in the Fund, after paying administration costs and assessments, are distributed 40% to the county, 40% to the Saint Paul School District and 20% to the city of Saint Paul on an annual basis.
County Manager Comments
No additional comments.
Last Previous Action
On February 9, 2021 the Ramsey County Board of Commissioners approved the repurchase of tax-forfeited property located at 1008 Carroll Avenue, Saint Paul, MN 55104 (Resolution B2021-032).
Attachments
1. City of Saint Paul Resolution
2. Map of property
3. Assignment of Mortgage
4. Corporate Assignment of Mortgage